How much do I have to withdraw each year?
This can be a little tricky but luckily there are some helpful tools.
Calculate your Minimum Distribution in 3 steps.
Here are some steps to calculating your RMD:
1. Determine Withdrawal Factor
The IRS provides a Uniform Lifetime Table that provides life expectancy factors based on your age. This factor is used to determine how much of your IRA balance must be withdrawn each year.
2. Calculate Your Required Minimum Distribution
Divide the account balance of your IRA as of December 31 of the preceding year by your life expectancy factor from step 1. This will give you the minimum amount that must be withdrawn from the account each year.
3. Repeat the Calculation Each Year
The RMD must be taken annually, and the calculation must be repeated each year to determine the RMD for the coming year.